MIRA INFORM REPORT

Report Date :

19.11.2014

IDENTIFICATION DETAILS

Name :	NEXUS ELECTRO STEEL LIMITED
Registered Office :	No. 202, Shivalay, Block C, 16, Ethiray Salai, Egmore, Chennai - 600008, Tamilnadu
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	22.07.1998
Com. Reg. No.:	18-040858
Capital Investment / Paid-up Capital :	Rs.100.010 Millions
CIN No.: [Company Identification No.]	U29142TN1998PLC040858
TIN No.:	Not Available
IEC No.:	Not Available
TAN No.: [Tax Deduction & Collection Account No.]	CHEN05766F
PAN No.: [Permanent Account No.]	AABCN4224H
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Laminations and Cores for the Electrical Transformer industry.
No. of Employees :	Information denied by management

RATING & COMMENTS

MIRA’s Rating :

Ca (14)

RATING		STATUS	PROPOSED CREDIT LINE
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security

Maximum Credit Limit :	USD 341000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. Management of the company has failed to file its financials after 2012 with the government department. As per available financial of 2012, external borrowing of the company seems to be huge. The rating also takes into consideration weal financial risk profile, weak debt protection metrics and working capital intensive operations. However, business is active as per the status shown in the registrar of companies. Payment terms are reported to be slow. The company can be considered for business dealing on safe and secured trade terms and conditions.

NOTES:

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

N E W S

Verdict Implications: Apex court order may alter coal import dynamics. Traders go slowly on talks over coal supply contracts, uncertainty over cancellation of blocks weigh on stocks.

Recent arrest of the Chennai head of the Registrar of Companies, the ministry of corporate affairs arm that ensures that companies file all the information required by the Companies Act is the latest manifestation of a messy fight between a father and his adopted son for the control of Rs 40000 mn Business Empire. The Central Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10 lakhs as bribe from M a M Ramaswamy, a CBI official said.

Central Bureau of Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.

Infosys maintains revenue guidance. COO Rao says attrition still an area of concern and it would take a few more quarters to bring down levels to 13-15 %.

DHL to invest Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its e-commerce business model for the Asia-Pacific region.

Blackstone may buy stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.

Kingfisher Airlines Ltd grounded in October 2012 under the weight of heavy debt and accumulated losses, recently approached the Delhi high court for relief in two separate cases. The airline challenged a notice by Punjab & National Bank alleging that it had wilfully defaulted on Rs 7700 mn of loans and sought more time to comply with the requirements under the listing agreements with the Stock Exchanges.

OnMobile likely to sack another 300 employees. The lay-offs follow a spate of senior-level exits over the past two years, starting with of its founder. The overall lay-offs could number around 600 and are driven by the need to cut costs, says a former employee.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long Term Rating = C
Rating Explanation	Have very high risk of default
Date	02.09.2014

Rating Agency Name	CRISIL
Rating	Short Term Rating = A4
Rating Explanation	Have minimal degree of safety and carry very high credit risk
Date	02.09.2014

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2014.

INFORMATION DENIED

Management Non Co-Operative (Tel No.: 91-44-206000600)

LOCATIONS

Registered/ Corporate Office :	No.202, Shivalay, Block C, 16, Ethiray Salai, Egmore, Chennai - 600008, Tamilnadu, India
Tel. No.:	91-44-40600600 / 28231120
Fax No.:	91-44-40600610 / 28214118
E-Mail :	ketan@nesl.in chennai@nesl.in nexusgroup@vsnl.com
Website :	http://www.nesl.in www.nexusgroup.in
Factory 1:	Opposite to JSW Steel, Mumbai – Nashik N.H. #3, Kasne Village, Vasind P.O., Thane – 421604, Maharashtra, India
Tel. No.:	91-2522-645395/ 645396
Factory 2:	Located At · Puducherry

DIRECTORS

As on 29.09.2012

Name :

Mr. Ketan Chhotalal Bagadia

Designation :

Managing Director

Address :

“Amrut Villa” 28, (Old No.49) RItherdon Road, Vepery, Chennai - 600007, Tamilnadu, India

Date of Birth/Age :

10.12.1965

Qualification:

Degree

Date of Appointment :

22.07.1998

PAN No.:

AAKPK7418G

DIN No.:

01404893

Other Directorship:

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U29142TN1998PLC040858	NEXUS ELECTRO STEEL LIMITED	Managing director	22/07/1998	22/07/1998	-	Active	NO
2	U31901TN1972PLC006253	CURRENT ELECTRICALS LIMITED	Managing director	01/12/2003	01/12/2003	-	Active	NO
3	U65999TN2006PTC059280	NEXUS FINVEST PRIVATE LIMITED	Director	23/03/2006	23/03/2006	-	Active	NO

Name :

Mr. Hiren Mahendra Botadra

Designation :

Whole – Time Director

Address :

10, Kadambari Apartment, 41 Ritherdon Road, Chennai - 600007, Tamilnadu, India

Date of Birth/Age :

06.01.1977

Qualification:

Degree

Date of Appointment :

14.03.2006

PAN No.:

AAIPB6143M

DIN No.:

01375328

Other Directorship:

S. No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U31901TN1972PLC006253	CURRENT ELECTRICALS LIMITED	Whole-time director	01/12/2003	01/12/2003	-	Active	NO
2	U29142TN1998PLC040858	NEXUS ELECTRO STEEL LIMITED	Whole-time director	14/03/2006	14/03/2006	-	Active	NO
3	U40300TN2014PTC097560	CURRENT POWER EQUIPMENTS PRIVATE LIMITED	Director	30/09/2014	30/09/2014	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Jatin Shah
Designation :	G.M. in Finance

MAJOR SHAREHOLDERS

As on 29.09.2012

Names of Equity Shareholders	No. of Shares
Ketan C. Bagadia	2962579
Hitesh G. Bagadia	350
Charu K. Bagadia	790200
Anila V. Mehta	900
Shailesh G. Bagadia	1000
Rajendra G. Bagadia	1000
Hiren M Botadra	499950
Hiren M Botadra Joint Holder: Poonam H. Botadra	401346
Charu K Bagadia Joint Holder: Ketan C. Bagadia	305040
Ketan C Bagadia Joint Holder: Charu K. Bagadia	37130
P. S. Shekar	5
Total	4999500

Names of Preference Shareholders	No. of Shares
Ketan C. Bagadia	3788166
Charu K. Bagadia	910619
Charu K. Bagadia Joint Holder: Ketan C. Bagadia	151417
Ketan C. Bagadia Joint Holder: Charu C. Bagadia	151312
Total	5001514

As on 28.03.2013

Names of Allottees	No. of Shares
Ketan C. Bagadia	978817
Charu K. Bogadia	91061
Charu K. Bogadia	15142
Ketan C. Bagadia	15131
Nexus Finvest Private Limited, India	500000
Total	1600151

Equity Share Break up (Percentage of Total Equity)

As on 29.09.2012

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Laminations and Cores for the Electrical Transformer industry.

Products :

Product Description	Item Code No. (ITC Code)
Manufacturing of transformer parts and cores	85049010

Brand Names :

--

Agencies Held :

--

Exports :

Not Divulged

Imports :

Not Divulged

Terms :

Selling :

Not Divulged

Purchasing :

Not Divulged

PRODUCTION STATUS – NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Not Divulged

Customers :

Not Divulged

No. of Employees :

Information denied by management

Bankers :

· ICICI Bank Limited, Land Mark Race Cource Circle, Alkapuri, Baroda - 390015, Gujarat, India

· State Bank of India, Oversea Branch, No.86, Rajaji Salai, Chennai - 600001, Tamilnadu, India

Facilities :

SECURED LOANS	31.03.2012 Rs. In Millions	31.03.2011 Rs. In Millions
LONG TERM BORROWINGS
Term loans from banks	2.029	49.552
Rupee term loans from others (Secured by way of guarantee issued on behalf of the company by its bankers.)	15.000	15.500
SHORT TERM BORROWINGS
Loans repayable on demand from banks (Hypothecation of the Current Assets (Raw Material, Semi -finished goods, finished goods, stores, spares, receivables and other Current Assets)	420.954	416.553
Total	437.983	481.605

Banking Relations :	--
Financial Institution :	3i Infotech Trusteeship Services Limited, 3rd to 6th Floor, International Infotech Park, Tower No.5, Vashi Railway Station Complex, Vashi, Navi Mumbai - 400703, Maharashtra, India
Auditors :
Name :	Nilesh B Shah and Company Chartered Accountant
Address :	Dr. Rajivi Towers, Shop No. 3-4-, 2^nd Floor, No.231, Purasawalkam High Road, Chennai - 600007, Tamilnadu, India
Tel. No.:	91-44-42179705
Fax No.:	91-44-42179705
E-Mail :	webzine@eth.net
PAN No.:	AAJPS3444D
Memberships :	--
Collaborators :	--
Associate :	· Current Electricals Limited · Nexus Finvest Private Limited

CAPITAL STRUCTURE

As on 29.09.2012

Authorised Capital : Rs.122.000 Millions

Issued, Subscribed & Paid-up Capital : Rs.65.597 Millions

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
5250000	Equity Shares	Rs.10/- each	Rs.52.500 Millions
5250000	Preferences Shares	Rs.10/- each	Rs.52.500 Millions
	Total		Rs.105.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4999500	Equity Shares	Rs.10/- each	Rs.49.995 Millions
5001514	Preferences Shares	Rs.10/- each	Rs.50.015 Millions
	Total		Rs.100.010 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	100.010	100.010
(b) Reserves & Surplus	19.481	1.968
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	119.491	101.978
(3) Non-Current Liabilities
(a) long-term borrowings	117.029	115.051
(b) Deferred tax liabilities (Net)	28.344	24.184
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	145.373	139.235
(4) Current Liabilities
(a) Short term borrowings	459.056	453.404
(b) Trade payables	479.033	333.097
(c) Other current liabilities	1.270	7.955
(d) Short-term provisions	16.366	10.582
Total Current Liabilities (4)	955.725	805.038
TOTAL	1220.589	1046.251
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	292.581	302.410
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000
(e) Other Non-current assets	0.426	0.422
Total Non-Current Assets	293.007	302.832
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	471.514	380.898
(c) Trade receivables	354.853	233.828
(d) Cash and cash equivalents	32.512	35.956
(e) Short-term loans and advances	58.585	72.303
(f) Other current assets	10.118	20.434
Total Current Assets	927.582	743.419
TOTAL	1220.589	1046.251

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		100.010
2] Share Application Money		0.000
3] Reserves & Surplus		22.098
4] (Accumulated Losses)		(28.243)
NETWORTH		93.865
LOAN FUNDS
1] Secured Loans		461.748
2] Unsecured Loans		80.500
TOTAL BORROWING		542.248
DEFERRED TAX LIABILITIES		18.599
TOTAL		654.712
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		285.547
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	359.667
	Sundry Debtors	154.224
	Cash & Bank Balances	22.647
	Other Current Assets	96.400
	Loans & Advances	3.378
Total Current Assets		636.316
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	245.229
	Other Current Liabilities	17.211
	Provisions	4.860
Total Current Liabilities		267.300
Net Current Assets		369.016
MISCELLANEOUS EXPENSES		0.149
TOTAL		654.712

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	948.560	926.523	960.329
		Other Income	11.638	8.369	5.239
		TOTAL (A)	960.198	934.892	965.568
Less	EXPENSES
		Cost of materials consumed	627.721	655.575
		Employee benefit expense	50.750	43.269
		Other expenses	113.364	95.235
		TOTAL (B)	791.835	794.079	871.252
	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		168.363	140.813	94.316
Less	FINANCIAL EXPENSES (D)		127.257	107.343	64.823
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		41.106	33.470	29.493
Less/ Add	DEPRECIATION/ AMORTISATION (F)		14.155	13.343	10.169
	PROFIT/ (LOSS) BEFORE TAX (E-F) (G)		26.951	20.127	19.324
Less	TAX (H)		9.134	12.015	29.000
	PROFIT/ (LOSS) AFTER TAX (G-H) (I)		17.817	8.112	(9.676)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(20.130)	(28.242)	(18.566)
	BALANCE CARRIED TO THE B/S		(2.313)	(20.130)	(28.242)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	298.600	97.471	97.471
	TOTAL EARNINGS		298.600	97.471	97.471
	IMPORTS
		Raw Materials	NA	545.987	418.851
		Capital Goods	NA	12.625	65.148
	TOTAL IMPORTS		NA	558.612	483.999
	Earnings / (Loss) Per Share (Rs.)		3.56	1.62	(1.94)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
Net Profit Margin (PAT/Sales)	(%)	1.88	0.88	(1.01)
Operating Profit Margin (PBIDT/Sales)	(%)	17.75	15.20	9.82
Return on Total Assets (PBT/Total Assets}	(%)	2.21	1.92	2.10
Return on Investment (ROI) (PBT/Networth)		0.23	0.20	0.21
Debt Equity Ratio (Total Debt /Networth)		4.82	5.57	5.78
Current Ratio (Current Asset/Current Liability)		0.97	0.92	2.38

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012
	Rs. In Millions	Rs. In Millions
Share Capital	100.010	100.010
Reserves & Surplus	1.968	19.481
Money received against share warrants	0.000	0.000
Share Application money pending allotment	0.000	0.000
Net worth	101.978	119.491
Long Term borrowings	115.051	117.029
Short Term borrowings	453.404	459.056
Total borrowings	568.455	576.085
Debt/Equity ratio	5.574	4.821

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2010	31.03.2011	31.03.2012
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	960.329	926.523	948.560
		(3.520)	2.378

NET PROFIT MARGIN

Net Profit Margin	31.03.2010	31.03.2011	31.03.2012
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	960.329	926.523	948.560
Profit	(9.676)	8.112	17.817
	(1.01%)	0.88%	1.88%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-----------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	----------
22]	Litigations that the firm / promoter involved in	----------
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	----------
26]	Buyer visit details	----------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	No
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

Note: The Registered Office of the company has been shifted from 202, "Shivalya" Block 'C' 16, Ethiraj Salai, Chennai - 600105, Tamilnadu, India to the present address w.e.f. 26.12.2008.

UNSECURED LOANS:

Particulars	31.03.2012 Rs. In Millions	31.03.2011 Rs. In Millions
LONG TERM BORROWINGS
Fully convertible debentures others	50.000	50.000
Other loans and advances, others	50.000	0.000
SHORT TERM BORROWINGS
Loans and advances from related parties	38.102	36.850
Total	138.102	86.850

CORPORATE INFORMATION

Subject promoted by Mr. Ketan C. Bagadia, is a closely-held public limited company, primarily manufacture of Laminations and Cores for the Electrical Transformer industry. Originally, Mr. Ketan C. Bagadia commenced the manufacture Transformer Laminations in the year 1987 in Chennai. Subsequently, due to a major thrust given by successive Governments Power Generation / Distribution, the demand for Transformers grew manifold, resulting in a huge demand for Transformer Laminations. Later to this demand, Mr. Ketan C. Bagadia along with his family members established in the year 1994 a green - field facility in for the manufacture of Transformer Laminations and Cores. Thus the promoters of NESL have more than 25 years of experience of Transformer Laminations and Cores.

PUDUCHERRY PLANT

The plant in Puducherry is located on an industrial plot leased by PIPDIC Limited in favour of NESL for 99 years. The total manufacturing approx 10,000 Sq.Ft and NESL has installed many sophisticated equipments including Automatic Slitting Line, Shearing Machines, Press, Press Brake, EOT / Jib Cranes as well as Core Loss Testers to produce Laminations of the highest quality suitable for and Power Transformers. The layout of the plant has been designed to handle high volume of materials efficiently and as per production process. This plant has a ISO 9001 : 2000 Certification from TUV Rheinland for manufacturing of Laminations and Cores.

MUMBAI PLANT

During 2009, NESL has taken a step towards forward integration by setting up a new plant on the outskirts of Mumbai.

This ultra-modern, green-field project has been set-up, to manufacture Cut Laminations, Core Assembly, Windings and Core / Coil Kasne Village near Mumbai on the Mumbai - Nashik NH # 3. Thus the company captures the entire value chain in the transformer manufacturing process in a significant manner. This plant is also ISO

9001 - 2000 certified by TUV Rheinland and Six Sigma Complaint as per audit by an external agency.

BUSINESS AND OUTLOOK

The company has performed well in the year despite difficult global environment. The focus is presently towards markets which would provide increased value addition coupled with prompt payments from customers. The company has participated in many international exhibitions in the year and the benefit of this participation is expected to accrue soon. The objective of the management would be to consolidate the present operations during 2012-13 so that the company is able to reap the benefits of various initiatives taken by the company in the past 2-3 years. The increased share of export sales is likely to benefit the company in the long run as this would result in incremental margins for the given sale. The company is planning to set up a facility in Chennai in the coming year which would facilitate them to increase the market share of our products and also give logistical advantages.

Their Puducherry units were affected by the occurrence of cyclone “Thane” in December 2011. Normal operations resumed in a short span of two days and a suitable claim for the damage occurred has been made on the Insurance Company. The impairment to all assets has been recognized in the accounts for the year just ended.

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10413388	19/03/2013	230,000,000.00	ICICI BANK LIMITED	Landmarkrace Cource Circle, Alkapuri, Baroda - 390015, Gujarat, India	B71312342
2	10380581	03/12/2012 *	233,710,000.00	ICICI BANK LIMITED	Landmarkrace Cource Circle, Alkapuri, Baroda - 390015, Gujarat, India	B63705263
3	10081829	04/12/2012 *	910,000,000.00	STATE BANK OF INDIA	Overseas Branch, No.86. Rajaji Salai, Chennai - 600001, Tamilnadu, India	B64441728

*Date of modification Charges

FIXED ASSETS:

· Land

· Buildings

· Factory Building

· Plant and Equipment

· Other plant and Equipment

· Furniture and Fixtures

· Vehicles

· Motor Vehicles

· Office Equipment

· Computer Equipments

· Other Equipments

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.81
UK Pound	1	Rs.96.77
Euro	1	Rs.77.09

INFORMATION DETAILS

Information Gathered by :	HTL
Analysis Done by :	RAS
Report Prepared by :	VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	1
--LIQUIDITY	1~10	1
--LEVERAGE	1~10	1
--RESERVES	1~10	1
--CREDIT LINES	1~10	1
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		14

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NB		NEW BUSINESS

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